The personal loan was introduced in the second half of the last century and today constitutes a particularly popular consumer loan for private individuals.
It is a loan that fits too well with borrowing for a car, motorcycle, caravan or even a boat. However, the personal loan can also be used for smaller consumer goods or services.
A nice feature of the personal loan is that you can determine a lot about how the loan will take place. Your vote is very important when setting a term. So you can decide for yourself whether you prefer lower monthly payments over a shorter term. Borrowing cheap money with a cheap personal loan is therefore always a possibility.
Expiring personal loan
The personal loan is a downward credit. This means that you have to pay fixed monthly payments during the agreed term of the personal loan. The monthly amounts of the financing consist of fixed parts of repayment and interest payments. It is possible to pay off more in the meantime than the agreement was, but this is not penalty-free, as with a revolving credit.
When to take out a personal loan?
The personal financing fits both with larger and smaller purchases. The credit would suit the financing of a new car, but even if your washing machine has just gone, it is possible to replace it with a personal loan .
Calculate time & interest personal loan
When you take out a personal loan , you must take into account the (economic) life span of the product to be financed. It is strongly advised to keep the term of the loan within the limit of this lifespan. After all, you do not want a loan with a term of 6 years, while the product has to be replaced within 3 years.
Close personal loan benefits
- You always know exactly what to expect with this form of borrowing money. The monthly costs (interest and repayment) and the number of installments of the loan are recorded in the loan agreement. These charges are not changed in the interim, so personal loans offer a lot of security for the borrower;
- The interest rate of the personal loan is often cheaper than the interest rate of a revolving credit . Finally, a lender runs no interest rate risk. This risk means whether or not a lender is at risk of losing a loss at very low interest rates;
- It is quite possible that the loan is offered with a free death cover.
- Personal loan without BKR assessment is possible.